Utility cost reduction programme (Rezsicsökkentés)

Utility cost reduction programme (Rezsicsökkentés)


2013 – ongoing


Every consumer

Managing body

Ministry of Innovation and Technology (ITM); Consumer Protection Authority; National Utilities Ltd.

Volume of funding

Not applicable, as it depends on the market price level. Currently the public company makes a profit on the programme.


A public company (National Utilities Ltd.) sells energy for households at a regulated price, which in 2013 could not be higher than 90% of the market price level that year. At the beginning, it led to decreasing utility costs for households, but the energy market prices started to decline after 2014, which was not followed by the regulated prices of National Utilities Ltd., which are attached to the price level of 2013. It means that the regulated price is currently higher than it would be without the scheme. Also, the programme does not include social targeting, meaning that even if savings were realised by consumers, the higher the energy consumption of a household is, the bigger the subsidy it receives. The programme thus helps high-income groups more than low-income groups (although currently, this means the state benefits more from the better off).

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